FARM GROUPS DIFFER 180 DEGREES OVER SUBSIDY BILLS

Richard OrrCHICAGO TRIBUNE

It looks like federal farm subsidy programs, which have cost taxpayers billions and billions of dollars over a half-century, may be phased out within a few years.

That scenario loomed last week when the House passed a farm bill similar to one passed earlier by the Senate. Both bills mark a fundamental change in agricultural policy, ending the link between federal subsidies paid to farmers and the market prices of their crops.

Whether the bills are good or bad depends on to whom you speak.

The giant American Farm Bureau Federation hailed passage of the House bill as representing "a major step forward for American agriculture as lawmakers crafted the best bill possible given the constraints of budget pressure and the approach of the planting season."

Richard Newpher, executive director of the federation's Washington office, said the bill "continues the move toward market orientation started in past farm bills, provides greater flexibility for farmers to produce for the market, and provides a safety net for producers."

By contrast, the National Farmers Union, predicted the House bill "will be the most universally unpopular farm bill ever" and said unless major changes are made in the two bills by a conference committee, the union will urge a presidential veto.

"Overall, this bill provides no real reform of farm policy and leaves farmers out in the cold," said Leland Swenson, union president.

Instead of offering farmers price supports and cash subsidies in return for taking land out of production, the House and Senate bills call for fixed but declining payments over the next seven years to producers of corn and other feed grains, wheat, cotton and rice. And farmers would be given more flexibility to plant whatever crops they wish.

A conference committee will meet soon to iron out differences between the House and Senate bills.

The Farm Bureau's Newpher said his group urges the conference committee to expedite its deliberations so the nation`s farmers can find out what rules they will be operating under before they plant.

The Farmers Union's Swenson said the House and Senate bills are not only unpopular among farmers, but also will prove to be so among taxpayers and consumers as well.

"What they do is provide payments to producer, regardless of what or even if they don't plant, and distribute those payments in the same old way with the largest producers getting the most," he said.